Dell to pay NY $4M for misleading ads

Attorney General Andrew Cuomo said Tuesday that Dell and a subsidiary have agreed to pay $4 million to resolve charges of fraudulent and deceptive business practices impacting consumers across New York state.

The settlement, which includes Dell Financial Services follows a decision in New York Supreme Court, Albany County, which backed Cuomo’s claims that Dell had engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices. The attorney general filed a lawsuit that charged Dell had engaged in bait and switch advertising with respect to its “no interest” financing promotions. Those ads misled consumers to believe they had qualified for promotional financing, failed to adequately disclose the terms of its “next day” service contracts and failed to provide consumers with warranty service and promised rebates.

Along with the $4 million in restitution, penalties and fees, the settlement also requires Dell to make sweeping changes to its advertising, sales and financing practices, a release from Cuomo’s office stated. The company did not admit to any wrongdoing.